Planar Systems, Inc. 401K Plan

Summary

Planar operates in what might be described currently as a challenged industry. Often companies in challenging industries or ones that have run across difficulties will offer little or no benefit programs to their employees.

Sometimes this lack of benefits is temporary or permanent. Even though Planar is struggling with profitability, they have made a commitment to its employees to offer a program which is designed to meet the minimum “Safe Harbor” requirements by the DOL and IRS. These safe harbor programs can reduce implementation costs and provide tax benefits to the company, but are always valuable to the retirements of its employees.

Strengths

Offers a safe harbor match of 100% of the first 3% of employee contributions and 50% up to 5% of employee additional contributions beyond the 3% contribution.

Provides long-term disability option to pay premiums with after tax dollars, so any benefits paid are tax free.

Weakness

Program relies on an expensive group of confusing investment choices of actively managed funds to create an employee’s retirement plan. This mix of investments is difficult to combine into a coherent portfolio that optimizes risk and return.

Provides only one index fund among its investment choices. We would encourage more indexed investments.

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DISCLOSURESPacific Capital Works, Inc. is registered as an investment adviser in Oregon and Texas. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration does not constitute an endorsement of the firm by securities regulators nor does it indicate that the adviser has attained a particular level of skill or ability. Pacific Capital Works, Inc. is not engaged in the practice of law or accounting.All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals, and economic conditions, may materially alter the performance of your portfolio. Past performance is not a guarantee of future success. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will either be suitable or profitable for a client's portfolio. Third-party recognition from rating services or publications does not guarantee future investment success. Working with a highly-rated adviser does not ensure that a client or prospective client will experience a higher level of performance or results.